COMPENSATION SOFTWARE MARKET ANALYSIS

Compensation Software MarketSize and Trends

Rising demand for automated compensation processes is expected to aid in growth of the market

Increasing demand for automated compensation management process is one of the major factors affecting growth of the market during the forecast period (2018–2026). Automation aid in simplifying compensation planning and processing of implementations (policy, procedures, regulations and others). It reduces paper work, increases efficiency, simplifies the process and gives a centralized place to manage all the tasks related to employee compensation and saves the administration’s cost and time while providing maximum efficiency with reduced manual errors.

Moreover, rising adoption of digital HR technology (digital HR technologies comprises different equipment for different types of HR/management related operations such as biometric machine for attendance) is one of the recent trends and major drivers for growth of the compensation software market globally. Use of mobile phones for work and communication by employees of any organization is increasing and this has led to growing adoption and implementation of mobile HR technologies such as WorkBright, Namely, and Zenefits. This is expected to create a conducive environment for growth of the market.

On-premises segment accounted for largest share in the global compensation software market in 2017

On-premises deployment segment is estimated to hold the larger market share in 2018, owing to better confidential information control and security from external attacks. It provides benefits such as data migration, ease in installation, employee training services, and complete control over critical database of the employees and HR policies.

Cloud-based segment is expected to exhibit the highest CAGR over the forecast period. This is due deployment being cost-effective and benefit of deployment even in a basic IT infrastructure.